This factsheet gives a quick overview of what a fixed-asset register is. We will soon be publishing some examples which illustrate how to work out depreciation. Follow/like us on Twitter and Facebook and/or subscribe to CASH eNEWS, and we’ll let you when these are put on the site.
The organisation should maintain a list of fixed-assets, with details of cost, depreciation policy, serial numbers and where items are stored. Typically this list would cover items valued at £100 or more and include items like computers, office furniture, catering equipment in a community centre kitchen etc.
The fixed asset register is a way of recording and tracking all the fixed assets that the charity owns. This helps to identify loss of assets through theft or carelessness, provides a place where deprecation can be calculated and details of insurance.
It is surprising how easy it is to lose a laptop, for instance, either because they have been deliberately stolen or an employee has left and not returned it.
If assets are kept off-site it’s sensible to have a form that the “asset keeper” fills in each year to confirm that the asset still exists, is in good condition and where it is located.
When the asset has reached the end of its life for depreciation purposes, it may still have a value to the charity or a value as a second-hand item. If it is being disposed of it should be sold for its second-hand value (not freely given away). You may choose to sell it to a member of staff or a volunteer but you should have some reason for having established a fair price for the asset.
CASHFACTS Fixed-asset register is reviewed at the start of every financial year. It may be amended throughout the year. If you want to be informed of major updates subscribe to CASH eNEWS or follow/like us on Twitter and Facebook.
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